Withholding Tax Resource Guide

Iowa Withholding Tax

What is Iowa Withholding Tax?

Withholding tax is the amount of employee’s pay withheld by the employer and sent directly to the government as partial payment of state income tax. The amount of withholding tax depends on employee’s income. The Iowa state income tax is between 0.36%-8.98%. Therefore, the withholding tax should be similar to the state income tax range.

Employees do not need to take any action. The employers/businesses will need to deduct the withholding tax from employee’s paycheck and submit and file the withholding tax to Iowa Dept of Revenue.

How much is Iowa Withholding Tax?

Since Iowa withholding tax withheld is used to pay for employee’s Iowa state income tax, the withholding tax should correlate with state income tax bracket. The Iowa state income tax rate ranges from 0.36% to 8.98%. The withholding tax should be within the state income tax rate range.

State

Year

State Income Tax Rate

Withholding Tax Rate

Iowa

2015

0.36%-8.98%

0.36%-8.98%

How to File Iowa Withholding Tax?

Employees do not need to do anything.

Employers/Businesses need to register withholding tax account with Iowa Department of Revenue. Depending the size of the company, every three months, the employers have to file a quarterly withholding reports and submit withholding tax to the Department of Revenue. Most small businesses need to file quarterly while larger businesses need to file more frequently.

How to Register for Iowa Withholding Tax?

When to File and Deadlines for Iowa Withholding Tax Return

Generally, Iowa Withholding Tax returns have to be filed every three months, ending on March 31 (Q1), June 30 (Q2), September 30 (Q3) and December 31 (Q4). Typically, the deadline to mail Iowa Withholding Tax return is the last day of the following month.

Quarter

Months

Deadline

Q1

January - March

April 30

Q2

April - June

July 31

Q3

July - September

October 31

Q4

October - December

January 31

Iowa IA Withholding Tax Contacts and Address:

For more information or help on Iowa Withholding Tax, please use the contact information below